• EUR/NZD dipped on Thursday as rise in commodity prices and likely pace of rate increases in New Zealand boosted kiwi dollar.
• EUR/NZD initially gained but attracted sellers at 1.6900, the pair dips towards 1.6997. A break and daily close above 1.7037 (23.6%fib) will accelerate further downside.
• Technical signals show the pair could gain more ground in the short-term as RSI is at 47 bullish, daily momentum studies 5, 9 and 11 DMAs are trending down.
• Immediate resistance is located at 1.6683 (5DMA), any close above will push the pair towards 1.6723 (38.2%fib).
• Strong support is seen at 1.6621 (23.6%fib) and break below could take the pair towards 1.6543 (Lower BB ).
Recommendation: Good to sell around 1.6680, with stop loss of 1.6760 and target price of 1.6600
